Sarda Energy Secures SKS Power Acquisition as SC Rejects All Appeals

ENERGY
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AuthorSatyam Jha|Published at:
Sarda Energy Secures SKS Power Acquisition as SC Rejects All Appeals
Overview

Sarda Energy & Minerals Ltd. has received a decisive nod from the Supreme Court, which dismissed all appeals challenging its acquisition of SKS Power Generation (Chhattisgarh) Ltd. The apex court's ruling on February 27, 2026, validates the National Company Law Tribunal's (NCLT) approval of Sarda Energy's Rs 2,657 crore resolution plan, bringing a significant end to the legal challenges. This clears the path for Sarda Energy to integrate the 1200 MW thermal power asset, bolstering its energy security and diversification strategy.

Supreme Court Clears Sarda Energy's SKS Power Acquisition

Sarda Energy & Minerals Ltd. today received a decisive victory as the Supreme Court dismissed all appeals against its acquisition of SKS Power Generation (Chhattisgarh) Ltd., a 1200 MW thermal power asset. The apex court's order upholds the Rs 2,657 crore resolution plan approved by the NCLT, effectively concluding a protracted legal battle.

Reader Takeaway: Acquisition path cleared by SC; awaiting detailed order for full certainty.

What just happened (today’s filing)

The Supreme Court has rejected all appeals filed by unsuccessful applicants challenging Sarda Energy & Minerals Ltd.'s (SEML) resolution plan for SKS Power Generation (Chhattisgarh) Ltd. This landmark decision, pronounced on February 27, 2026, confirms the validity of the NCLT's approval granted on August 13, 2024, and the subsequent dismissal of appeals by the NCLAT.

The ruling signifies the final legal hurdle overcome for Sarda Energy's acquisition of the debt-ridden thermal power producer. The company is now awaiting the detailed order from the Supreme Court to formalise the next steps.

Why this matters

This Supreme Court judgment brings significant clarity and certainty to Sarda Energy's strategic acquisition of SKS Power Generation. It brings to a close years of legal wrangling, allowing Sarda Energy to proceed with integrating SKS Power's 1200 MW capacity into its portfolio.

The acquisition is expected to enhance Sarda Energy's energy security and diversify its revenue streams, aligning with its growth objectives in the minerals and metals sectors.

The backstory (grounded)

SKS Power Generation (Chhattisgarh) Ltd., a thermal power project with a 1200 MW capacity, faced insolvency proceedings after struggling with debt servicing issues. The Corporate Insolvency Resolution Process (CIRP) was initiated in April 2022 following an application by Bank of Baroda.

Sarda Energy & Minerals Ltd. emerged as the successful bidder with a resolution plan valued at Rs 2,657 crore. The National Company Law Tribunal (NCLT) approved this plan on August 13, 2024. Subsequently, unsuccessful bidders appealed this decision to the National Company Law Appellate Tribunal (NCLAT), which also dismissed their challenges.

What changes now

  • Sarda Energy & Minerals Ltd. will gain control of SKS Power Generation (Chhattisgarh) Ltd., adding 1200 MW of thermal power capacity.
  • The acquisition diversifies Sarda Energy's revenue streams beyond its core steel and ferroalloy businesses.
  • It enhances the company's energy security, potentially reducing operational costs.
  • The end of the protracted legal process provides strategic clarity and allows management to focus on integration and operational efficiency.

Risks to watch

While the Supreme Court's decision is a major positive, Sarda Energy awaits the detailed order, which may contain specific directives. Integration challenges with SKS Power's operations, including its Phase II capacity expansion, will need careful management.

Historically, Sarda Energy has faced operational challenges such as plant shutdowns and a recent accident on December 22, 2025, which resulted in one casualty. Financial performance, including profit growth, has also shown recent pressures, though long-term metrics remain robust.

Peer comparison

Sarda Energy & Minerals operates an integrated model encompassing mining, steel, ferroalloys, and power. This contrasts with many listed peers like NTPC Ltd., Adani Power Ltd., Tata Power Company Ltd., and JSW Energy Ltd., which are primarily focused on power generation and transmission, often with significant renewable energy portfolios.

SEML's diversification provides a unique competitive advantage, mitigating risks associated with commodity price volatility in any single segment.

Context metrics (time-bound)

  • SKS Power Generation's total capacity is 1200 MW.
  • Sarda Energy & Minerals Ltd.'s approved resolution plan value for SKS Power Generation is Rs 2,657 crore.
  • The Supreme Court pronounced its order on February 27, 2026.

What to track next

  • Await the detailed judgment from the Supreme Court.
  • Monitor the successful integration of SKS Power Generation's assets and operations.
  • Track Sarda Energy's progress on the expansion of SKS Power's Phase II capacity.
  • Observe the company's financial performance and operational efficiency post-acquisition.
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